Which of the Following Questions Is FALSE

question 8

Multiple Choice

Which of the following questions is FALSE?

• A) The method of payment (cash or stock) affects how the value of the target's assets is recorded for tax purposes and it affects the combined firm's financial statements for financial reporting.
• B) The combined firm must mark up the value assigned to the target's assets on the financial statements by allocating the purchase price to target assets according to their fair market value.
• C) Any goodwill created in a merger deal can be amortized for tax purposes over 15 years.
• D) Many transactions are carried out as acquisitive reorganizations under the tax code. These structures allow the target shareholders to defer their tax liability on the part of the payment made in acquirer stock but they do not allow the acquirer to step up the book value of the target assets.

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Definitions:

Elicited

Refers to a response that is drawn out or evoked by a specific stimulus or condition.

Intermittent Reinforcement

A conditioning schedule in which a reward or punishment (reinforcement) is not given every time the desired response is performed, making the response more resistant to extinction.

Continuous Reinforcement

A schedule of reinforcement in which a desirable behavior is rewarded every time it occurs, leading to rapid learning.

Extinction Contrast Effect

The increased difference in the intensity or frequency of a response observed when a previously reinforced behavior is no longer reinforced, in the presence of a contrasting condition that continues to be reinforced.